UNIVERSITY OF FLORIDA 

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3 1262 08486 7885 

Registry No. 1040-Q4 

NATIONAL RECOVERY ADMINISTRATION 

PROPOSED CODE OF FAIR COMPETITION 

FOR THE 

STONEWARE INDUSTRY 

AS SUBMITTED ON AUGUST 30, 1933 

WE DO OUR PART 

o: ---.... 

The Code for the Stoneware Industry 

in its present form merely reflects the proposal of the above-mentioned 

industry, and none of the provisions contained therein are 

to be regarded as having received the approval of 

the National Recovery Administration 

as applying to this industry 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. • • • • • • • • Price 5 cents 
S DB MITT ED BY 

NATIONAL STONEWARE MANUFACTURERS ASSOCIATION 

(ll) 

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GENERAL CODE OF FAIR COMPETITION FOR THE STONEWARE INDUSTRY 

ARTICLE I-PURPOSES 

The purposes for which this National Code· of Fair Competition is 

established to control the Stoneware Industry are as follows: 

(a) To nutke effective ·within the Stoneware Industry the terms, 

provisions, and policy of the National Industrial Recovery Act. 

(b) To regulate the Industry in its own and the public interest, so 

as adequately to protect consumers, competitors, and employees. 

(c) To adopt methods to aid in rebuilding the Industry on a high 

plane of honesty and careful business planning, to increase capacity to 

give employment., and to raise the living standards of the employees. 

(d) To pronwte the fullest utilization of the productive capacity of 

the Industrv. 

(e) To provide through the trade associations of the Industry the 

n1achinery necessary for the great cooperative rnovement throughout 

the industry in order to obtain a wide reemployment, to shorten the 

working hours, to pay a fair wage and to prevent unfair competition 

and disastrous overproduction. 

ARTICLE II-DEFINITIONS 

When used in this National Code, the following terms shall, unless 

the 9ontext otherwise indicates, have the following respective 

mean1ngs: 

"Stoneware Indus try" as used herein is defined to include any 

manufacturer and/or jobber and/or distributor of stoneware 

"Stoneware" means stoneware such as jugs, jars, crocks, food 

containers and stoneware specialities and stoneware kindred products. 

"Plant" means any establishn1ent engaged in the manufacture of 

Stoneware. 

"Person" means any individual, partnership, association, trust, or 

corporation engaged in the manufacture of stoneware. 

"Employee" means any person employed in the Industry. 

''Associations'' means the divisional associations, or informal 

organizations or divisions set up for the purpose of making effective 

the terms, provisions, and policy of the National Industrial Recovery 

Act. 

"Member" means a member of one or more of such divisional 

as:sociations or divisions. 

"President " means the President of the United States. 

ARTICLE III-PARTICIPATION AND DIVISIONS 

Participation in this Code, and any subsequent revision of or addition to the Code, shall be extended to any person in the United State;:; 

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engaged in the manufacture of Stoneware. All persons hereafter 

entering the busine3s of manufacturing stoneware shall be admitted 

to full participation in the associations or divisions on equal terms 

with the existing members thereof. 

The Stoneware Industry naturally falls into geographical divisions 

and, for the purpose of the administration of this Code, thes~ 

g~ographical div~si.o?-s are rec~gnized as separa~e entit~es and charged 

with the responsibility of setting up and operating thmr own administrative agencies under this Code. Each such district shall be independent and self-governing in respect of all conditions and problems 

relating exclusively to s-aid district. Proposals in respect of matters 

affecting more than one district may be initiated by any district, and 

shall be submitted for consideration to the National Executive Committee of the Stoneware Industry, hereinafter described, and its 

determination shall be binding upon said district and all other districts affected thereby. 

Districts are hereby established as follows: 

Eastern District 

Middle-Western District 

Paci.fic District 

Southern District 

Other districts of manufacturers or producers of stoneware may be 

established upon application of any such group, subject to the 

approval of the National Executive Committee hereinafter described, 

such districts to have representation on the National Executive Conlmittee of the Stoneware Industry. 

Each of the foregoing districts, and any others which may subsequently be formed within the Stoneware Industry, shall set up a 

trade association or a division committee for the purpose of administering the provisions of the Code, to secure adherence thereto, to 

hear and adjust complaints, to consider proposals for amendments 

thereof and acceptance thereto, and otherwise carry out within the 

district the purpose of the National Industrial Recovery Act as set 

forth in this Code. 

Inasmuch as they contain in their n1embership an overwhelming 

preponderance of the manufacturing firms in their respective districts, 

the follo~mg associations are hereby officially recognized as representatives of their divisions. 

Eastern Stoneware Manufacturers Association, for the Eastern 

District. 

Western Stoneware 1{anufacturers Association, for the MiddleWestern District. 

Southern Stoneware 1\tlanufacturers Association, for the Southern 

District. 

Pacific Coast Stoneware Manufacturers Association, for the Pacific 

District. 

Each division shall prepare for submission to the President, as 

part of this General Code of Fair Competition of the Stoneware 

Industry, a Divisional Code of Fair Labor. Each Divisional Code 

of Fair Labor shall contain the following provisions, prescribed by 

the National Industrial Recovery Act, assuring to employees: 

(1) that employees shall have the right to organize and bargain 

collectively through representatives of their own choosing, and shall 
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be free from the interference, restraint, or coercion of employers of 

labor, or their agents, in the designation of such representatives or 

in self-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection; 

(2) that no employee and no one seeking employment shall be 

required as a condition of employment to join any company union 

or any other union or to refrain from joining, organizing, or assisting 

a labor organization of his own choosing; and 

(3) that employers shall comply with the ma:Arimum hours of labor, 

minimum rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

It is understood that the plants of the Industry are open to capable 

workmen without regard to their membership or nonmembership in 

any organization, and nothing in this Code is to prevent the selection, 

advancement, retention, and/or discharge of employees on the basis 

of their individual merit. 

ARTICLE IV-INDUSTRY REGULATIONS 

Marketing Gode.-The National Executive Committee may establish a Marketing Code with provisions with respect to: 

(a) Simplification and standardization of products. 

(b) Cooperative advertising for the industry. 

(c) Collection and interchange of credit information. 

(d) Cooperative administration of insolvent debtors. 

(e) Dropped lines or surplus stocks, sometimes designated as" closeouts" or inventories which must be converted into cash to meet immediate needs, may be sold at such prices as are necessary to move the 

merchandise into buyers' hands. However, all such stocks must first 

be reported to the Executive Committee of the District and be disposed of subject to the approval of that Committee; this to apply on 

all stoneware products marketed on the gallonage basis. 

(f) And/or other aspects of marketing. 

ARTICLE V-TRADE PRACTICE RULES 

The following are unfair trade practices which are condemned· 

These, together with other practices which may be subsequently 

declared unfair by theN ational Executive Committee shall be deemed 

to be unfair methods of competition and the employment of such 

practices shall be considered as a violation of this Code: 

1. To sell any product of this industry below cost, such cost being 

determined by an approved method of cost finding in accordance with 

the regulations issued from time to time by the National Executive 

Committee, constitutes an unfair method of competition. This 

method shall include every element of cost entering into the manufacture, sale, and delivery, whether by rail, truck, or otherwise, of 

the industry products and shall be based upon the principles of 

accounting and cost finding adopted by the National Executive Committee for the industry. 

2. Violations of sections herein having to do with maximum hours 

and minimum rates of pay or any other terms relating to employees 

as adopted by this industry, whether applying to unskilled labor or 

otherwise, constitutes an unfair method of competition. 
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3. To withhold from or insert in an invoice statements which make 

such invoice a false record wholly or in part of the transaction represented on the face thereof constitutes an unfair method of competition. 

4. The giving to any purchaser of industry products any special or 

discriminatory prices, terms, privileges, or any rebates or allowances 

in any manner whatsoever contrary to the agreed terms and conditions of the industry or not as granted to all purchasers alike, constitutes an unfair method of competition. 

5. Interference or attempting to interfere in any manner whatever 

with an existing contract between 9 member of this industry and a 

purchaser constitutes an unlawful method of competition. 

6. The securing or attempting to secure orders or business by giving 

or the .offering of gifts, whether of money or anything of value, to 

customers and employees or anyone acting in their behalf, constitutes 

an unfair method of competition. 

7. The making or permitting or causirig to be made of any statement, oral or written, that reflects falsely on a con1petitor or hi& 

business constitutes an unfair method of competition. 

8. The enticing or attempting to entice employees of a competitor 

constitutes an unfair method of competition. 

9. The reproduction or copying without the written consent of theoriginator of an original design, the same having been filed with the 

Executive Committee or the principal office of the industry, constitutes an unfair method of competition. Protection of said original 

design shall be limited to three years from the date of the first sale 

of said original design. 

10. Sales terms shall be 1% 15 days, 30 days net, additional 30 

days for shipments west of the Rocky Mountains and the Dominion_ 

of Canada. 

11. To sell any of the products of this industry on a so-called consignment basis constitutes an unfair method of competition. 

12. To sell or offer to sell industry products on a basis of combination deals as defined by the Executive Committee constitutes an 

unfair method of competition. 

13. To violate the requirements or regulations of the Credit Bureau established by the Executive Committee constitutes an unfair 

method of competition. 

14. The books, records, and factories of all mmnbers of this industry shall be open during normal business hours for inspection without 

notice by the duly accredited representatives of the Executive· Committee. 

15. Selling second-quality ware to the trade for resale below the 

price of first-quality ware constitutes an unfair method of competiti0n. 

16. The National Executive Committee of the industry shall havethe power from time to time to interpret and construe the provisions 

of this Code, including, but without any limitation of the foregoing, 

the power to define the meaning thereof. Any interpretation or 

construction placed upon the Code by said National Executive 

Committee shall be final and conclusive. 
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ARTICLE VI-ADMINISTRATION 

1. DISTRICT EXECUTIVE COMMITTEE 

Representation.-There shall be a District Executive Committee of 

the Stoneware industry for each district to consist of 5 members 

selected by the representatives of the industry located within said 

district. 

Powers.-The District Executive Committee shall be the general 

planning and coordinating agency for the industry within the District. Its members selected by the established districts shall be 

empowered by the said Districts to act for them conclusively in 

respect to all matters before the Committee for consideration and 

within its jurisdiction. The Committee shall have powers and duties 

as provided herein, and in addition thereto shall: 

(a) Fro.m time to time require such reports from the member companies in each district as in its judgment may be necessary to advise 

it adequately of the administration and enforcement of the provisions 

of the Code; 

(b) Upon complaint of interested parties, or upon its own initiative, make such inquiry and investigation into the operation of the 

Code as may be necessary; and 

(c) Make such rules and regulations for the administration and 

enforcement of this Code as may be deemed advisable. 

(d) The Committee may delegate any of its authority to the N ational Executive Comwittee hereinafter provided and may designate 

such agents as it shall determine. 

2. NATIONAL EXECUTIVE COMMITTEE 

Representation.-Each District Executive Committee shall appoint 

from its own membership to represent its district on the National 

Executive Committee: 

Eastern District___________________________________________ Two members 

Middle Western District____________________________________ One member 

Southern District__________________________________________ One member 

Pacific District____________________________________________ One member 

And such other representatives as the N.R.A. may designate. 

Powers.-The National Executive Committee shall exercise such 

authority as may be delegated to it by the District Executive Committees. 

All communications and conferences of the stoneware industry 

with the President, or with his agents, concerning the approval or 

amendment of this Code or any of its provisions, or any matters relating thereto, shall be through the said National Executive Committee. 

The National Executive Committee shall serve as an executive 

agency for the District Executive Committees of the stoneware· industry, and shall be charged with the enforcement of the provisions 

of this Code and with the duties, through agents or otherwise, of 

hearing and adjusting complaints, considering proposals for amendments and making recommendations thereon, approving recommendations for exceptions to the provisions of 1

this __ Code, _and otherwise· 

administering its provisions. 
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Any adherent to the provisions of this Code or subject to its terms 

shall have the right to appeal to the National Executive Committee 

from the decisions of any District Executive Committee and its 

decision shall be final and binding except for the right of final appeal 

to the N.R.A. 

The function of this Committee shall be general planning and coordinating for the Stoneware industry, and the co-operation with 

similar boards of other industries to the end of effecting a balanced 

national economy. 

ARTICLE VII-GENERAL 

The cost of the supervision needed to secure proper observance of 

this Code and any additions thereto, compilation of statistical data 

and such other activities as may be necessary shall be apportioned 

pro rata so far as practicable to all persons in the industry whether 

or not they are members of the National Stoneware Manufacturers 

Association. 

Prior to the installation of additional productive machinery by 

members of this industry (except for replacement that will not increase 

productive capacity), or prior to the purchase and installation of 

productive machinery by persons not presently engaged in this 

industry, such members or persons shall be required to secure from 

the National Executive Committee certificates that such purchase or 

installation is consistent with effectuating the policy of the N.I.R.A. 

during the emergency period stated therein. 

No provision of this Code shall be interpreted or applied in such a 

manner as to: 

(a) Promote monopolies, 

(b) Permit or encourage unfair competition, 

(c) Eliminate or oppress small enterprises, or 

(d) Discriminate against small enterprises. 

This Code or any of its provisions. may be cancelled or modified and 

:any approved rule issued thereunder shall be ineffective to the extent 

necessary to conform to any action by the President under section 

10 (b) of theN ational Industrial Recovery Act. 

If any provision of this National Code is declared invalid or unenforceable, the remaining provisions shall nevertheless continue in full 

force and effect the same as if they had been separately presented for 

approval and approved by the President. 

Amendments to this Code may be proposed by an established district to the National Executive Committee or may be initiated by it, 

and when approved by the President shall be effective. 

Violation of any producer of stoneware industry products of any 

provisions of this Code, or any approved rule issued thereunder, is an 

unfair method of competition. 

It shall be the duty of the National Executive Committee to submit 

the General Industry Code and the Divisional Codes to the President, 

to report back to the associations or divisions the modifications or 

changes prescribed by the President, to act as intermediary between 

the President and the Industry and to gather such industry statistics 

and other types of information as may be required for the administration of this Code. 
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Nothing in this Code, or in the Divisional Codes already prepared or 

hereafter to be prepared, shall be construed as forming a partnership 

between or among any of the individuals, firms or corporations of the 

industry, or as a waiver of or to impair any of the constitutional 

rights of the participants in this Code or of the Divisional Codes. 

This Code shall be in effect beginning ten days after its approval by 

the President and remain in effect, subject to any subsequen\ changes 

or amendments for a period of two years from the date of enactment 

of the Industrial Recovery Act, if not rendered void in the meantime 

by a proclamation of the President or a joint resolution of Congress as 

provided in the Act or by cancellation by notice in writing to the 

President or his agents by the signatories to this Code in accordance 

with a reservation which is hereby made by each member of the 

National Stoneware Manufacturers Association. 

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